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The Michigan Economic Growth Authority (MEGA) recently approved tax incentives for nine companies choosing to expand or locate in Michigan. According to the companies’ estimates, the approved projects are expected to generate up to $89.4 million in new private investment, and create and retain a projected 1,222 direct jobs in communities across the state.
“As we work to foster business opportunities across a wide spectrum of sectors, we’re using every tool in our economic-development arsenal to leverage the kinds of public-private partnerships -- like the ones announced today -- that attract investment and create jobs for Michigan workers,” said Michael Finney, President and CEO of the Michigan Economic Development Corporation (MEDC).
The MEGA board approved incentives to win the following projects for Michigan over competing states and countries:
Avon Protection Systems Inc. -- The wholly owned subsidiary of Avon Rubber and the manufacturer of gas masks plans to invest $600,000 to expand production of gas masks for first responders, as well as specialized filters for the military, in Cadillac. The company expects the project to create up to 143 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $596,354 over six years to convince the company to expand in Michigan over a competing site in Maryland. The City of Cadillac is considering an abatement in support of the project. www.avon-protection.com/
Changan US Research and Development Center Inc. – The new-to-Michigan auto company is fully owned by Changan Automobile Co. Ltd., one of the largest automakers in China. The company plans to invest $7 million and lease a facility in Plymouth Twp. to conduct analysis, testing, simulation and verification activities for the auto industry. The company expects the project to create up to 161 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.7 million over seven years to convince the company to locate in Michigan over competing sites in Ohio, California and China. The Charter Township of Plymouth is considering an abatement in support of the project. www.globalchana.com/
Chemetall US Inc. – The developer, manufacturer and supplier of state-of-the-art specialty chemicals plans to invest $20.7 million to build a new manufacturing facility in Jackson. The company expects the new plant to retain up to 74 existing jobs. The plant will be the largest plant in the company's history, occupying 200,000 square feet with room for expansion on 40 acres. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $810,511 over five years to support Chemetall's decision to base its operations in Michigan over competing sites in Indiana and Kentucky. Blackman Charter Township is considering an abatement to further support of project. www.chemetallamericas.com
Crain Communications Inc. – One of the largest privately owned business publishers plans to invest over $3.6 million in facilities and website development over the next several years at its Detroit location in a major expansion of its AutoWeek.com website. The company expects the project to create up to 50 direct new jobs during this time. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $443,229 over five years to convince the company to expand in Michigan over a competing site in Illinois. The city of Detroit is in support of the project. www.autoweek.com and www.crain.com/
The MACOMB GROUP – A premier distributor of pipes, valves, fittings, and related products plans to invest $6.5 million to consolidate its four metro Detroit facilities into one significantly larger Sterling Heights location to eliminate redundancies, increase its fabrication capabilities, and improve operational efficiencies. The company expects the project to retain 107 existing jobs with an eye toward continued future growth. Based upon the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1 million over six years to help convince the company to expand in Michigan over a competing site in Ohio. The city of Sterling Heights is considering an abatement in support of the project situated within their SmartZone. www.macombgroup.com/
Macprofessionals Inc. – The company with the largest staff of Apple-certified technicians in the United States plans to invest $2.2 million to expand in Novi to support significant growth in its operations. The company expects the project to create up to 119 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $568,578 over five years to encourage the company to expand in Michigan over a competing site in Texas. The city of Novi is supportive of the project. www.macprofessionals.com/
Martinrea Jonesville LLC – The tier one automotive supplier of underbody components plans to invest $15.9 million in a 50,000 square-foot expansion at its current facility in Jonesville. The company expects the project to create up to 168 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $989,769 over five years to encourage the company to expand in Michigan over a competing site in Mexico. The village of Jonesville is considering an abatement in support of the project. www.martinrea.com/Public/Home.aspx
MTU Detroit Diesel Inc. – The manufacturer and servicer of diesel engines and propulsion systems for off-highway applications such as marine, rail, defense vehicles and power-generation systems plans to invest up to $32 million to retain its headquarters and to establish a logistics center as well as a potential future training center. The logistics center would locate in the Charter Township of Brownstown. The company, which is owned by Tognum AG, Germany, expects the project to create up to 115 direct new jobs and retain 245 existing jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at up to $7.5 million over eight years to encourage the company to expand in Michigan over a competing site. www.mtu-online.com/mtu-northamerica/mtu/mtu-in-north-america/
NU-VU Food Service Systems – The manufacturer of commercial food service equipment plans to invest $950,000 to expand its operations in Menominee by purchasing the assets of another company. The company expects the project to create up to 40 direct new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $90,201 over three years to encourage the company to expand in Michigan over competing sites in Vermont and Illinois. The city of Menominee is considering an abatement in support of the project. www.nu-vu.com/
The Michigan Economic Growth Authority (MEGA), the state’s response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Tax credit agreements, awarded on the basis of the company’s strength of project, program guidelines and MEGA board approval, are earned over time by a company’s performance in meeting specified investment and hiring requirements.
Companies eligible for a MEGA Employment Tax Credit against the MBT are those engaged in manufacturing, mining, research and development, high technology, wholesale and trade, film and digital media, office operations, and tourism projects as defined by state law. Generally, retail facilities are not eligible. A company may receive a MEGA agreement specific to its circumstance, as defined in statute as High Tech, High Wage, Retention, Standard or Rural MEGAs.
The MEGA board is also empowered under statute to award Brownfield Redevelopment tax credits to support new business expansion projects on property that is contaminated, blighted or functionally obsolete.
Further details on the MEGA MBT tax credits are available online:
Michigan Economic Growth Authority (MEGA) - High-Tech and High-Wage Tax Credits
Michigan Economic Growth Authority (MEGA) - Retention Tax Credits
Michigan Economic Growth Authority (MEGA) - Standard and Rural Job Creation Tax Credits
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the MEDC’s initiatives and programs, visit the website at www.MichiganAdvantage.org.
